Minister's 'advice' on Iran jet deal

Saturday 8 January 2005 19.46 EST
First published on Saturday 8 January 2005 19.46 EST

A senior minister wrote a personal letter of advice to the husband of Culture Secretary Tessa Jowell on side-stepping a strict US trade embargo against Iran, The Observer can reveal.

The letter from the Foreign Office Minister, Baroness Symons, to Jowell's husband, David Mills, reveals she gave him advice on how to proceed with a controversial $200 million deal to sell jet aircraft to the Islamic regime in Iran.

In the wake of the David Blunkett scandal, opposition politicians have been quick to seize on the leaked letter as providing fresh evidence of Labour ministers being especially helpful to their friends. They have demanded a full explanation from the Foreign Secretary, Jack Straw.

The US has a strict embargo on selling jets to Iran. Any British company or individual caught flouting the law would be blacklisted in the US.

In 2003 The Observer revealed how Jowell's husband lobbied Symons about the potentially lucrative deal to provide Iran with several British Aerospace jets after he sat next to her at a dinner party. Mills then went on to write to her, asking for help to push the deal through.

At the time Straw and Symons were adamant that Mills did not receive any special treatment. However, the leaked letter from Symons, written on headed government notepaper, suggests that this was not the case.

Symons wrote: 'Dear David. Given the obvious political sensitivities you will need to tread very carefully with this one. This is a difficult time to be raising Iran policy in Washington. The advice I have been given, with which I am inclined to agree, is that our official support for you with the administration would raise the profile of the case and, by so doing, increase the chance of eliciting a negative response.'

She advised Mills: 'So you will need to think very carefully about a lobbying strategy calibrated to achieve the right result. I am pleased that Allan Flood [the British Aerospace director] will be in Washington next week and that he will be calling on the Embassy to discuss this further. They are best placed to advise on next steps.'

Symons, whose portfolio includes the Middle East and international security, concluded: 'If after that meeting, you need further advice or help from me, please let me know. Yours sincerely, Liz.'

Opposition parties have accused Symons of giving Mills preferential treatment on a deal that could have had significant consequences for Britain's foreign relations. They argue that she should have written back telling him his request was being handled by an official.

The shadow Foreign Secretary, Michael Ancram, said: 'How many other businessmen would get such an immediate and helpful response from a senior minister?'

Last night a spokeswoman for Symons said: 'David Mills received no special treatment.'

Mills admits to looking for loopholes in the US law, but stressed he would never do anything illegal. He denied he had received any special treatment from Symons.

Mills said: 'I sought no favours and had none. It was dealt with in a completely, routine and proper way and, moreover, once I received the letter I took no further action to pursue the matter.'